A federal grand jury has returned a two-count indictment for wire fraud against Charles Augustus Banks, IV, former financial adviser to recently retired San Antonio Spurs All-Star Tim Duncan.
Banks turned himself in Friday and appeared in a federal courtroom, where the indictment was unsealed.
Duncan is seeking to recover millions from Banks, alleging the 49-year-old investment counselor schemed to defraud him by steering him toward investments that were conflicts of interest. Banks is accused of mishandling more than $20 million of Duncan's money.
The indictment alleges that between 2012 and 2013, Banks encouraged Duncan to loan $13.5 million to Gameday, a company for which Banks was the chairman. He did not reveal to Duncan that he personally benefited from the loans in the form of millions of dollars.
The indictment further alleges that in June 2013, Banks used Duncan's signature to increase a $6 million investment in Comerica Bank to $13.5 million without his knowledge or consent.
In a second lawsuit filed in November 2015, Duncan alleges that Banks led him to invest $1.1 million in a cosmetics company. According to the Associated Press, Duncan alleges Banks falsely claimed the company, Le Metier de Beaute, was profitable when it was actually near bankruptcy. The company has since shut its doors.
Duncan made nearly $240 million in his 19-year NBA career. Duncan won five NBA titles with the Spurs and was a 15-time All-Star.
Banks faces up to 20 years in federal prison on each wire fraud charge. He was released on bond following his initial appearance Friday.
(© 2016 KENS)